Telstra split bill passes Senate

 

Structural separation gets the green light.

The Senate has passed heavily debated legislation that would split Telstra's retail and wholesale divisions to make way for the National Broadband Network.

The bill was passed by a vote of 30 to 28 this afternoon, after a lengthy debate that caused parliamentary sitting time to be extended last night and today.

It was put forward by the Labor Government and supported by the Greens and independent senators Nick Xenophon and Steve Fielding.

The bill facilitated an $11 billion deal under which Telstra would migrate its copper and cable broadband networks to Government-owned NBN Co.

Xenophon yesterday told the Senate that there were "compelling reasons we need to deal with this legislation now", despite Coalition attempts to delay the vote until next year.

Coalition politicians opposed the passing of the bill, arguing that the Government had not provided enough information about its NBN plans.

"There are some very worthwhile reforms in this legislation with which we agree," Shadow Communications Minister Malcolm Turnbull stated after the bill was passed this afternoon.

"But the legislation cannot be separated from the NBN project it is designed to facilitate.

"We can all agree about the merits of structural separation or indeed of universal and affordable broadband."

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Telstra split bill passes Senate
"@scan06disk youve made my point. TPG are cheaper because of international capacity and vertical integration, not because of telstra separation. NBN doesnt do anything for international capacity, ..."
By djzort
 
 
 
Comments: 7
anonymous
Nov 26, 2010 4:07 PM

"We can all agree about the merits of structural separation or indeed of universal and affordable broadband." Turnbull.

Now let me see, who was it that sold Telstra as an unseparated vertical monopoly, presumably because they thought it would bring a higher price that way?
Mordd
Nov 26, 2010 4:20 PM
And so it begins, all that potentially stands in the way now are the telstra shareholders right?
sydneyla
Nov 26, 2010 4:53 PM
And the Telstra shareholders will probably not stand in the way if the way is now clear for Telstra to move forward, without threat and blackmail and the constant freeloading by opponents. And Telstra is allowed to compete strongly with competitors to the advantage of Australian consumer.
sydney
Nov 26, 2010 5:41 PM
Telstra competitors will not be able to go to the accc now and stop telstra from giving the consumer a better price.

The competitors will have to compete or go lower without relying on the accc.
djzort
Nov 26, 2010 6:08 PM
Time will tell if $59/month unlimited DSL becomes cheaper.

Did anyone else not notice that the cost per meg has dropped what 300%+ in the past 12 months *without* labors meddling?

TPG of course deserved mentioning for driving much of the price cuts.
scan06disk
Nov 26, 2010 10:54 PM
The only Award TPG should get is that of Horrid connectivity speeds as an average, after acquiring PPC1 via the buyout of Pipe Networks, TPG have done Sh*t all in improving exchange handling, Internal Interstate Carrier Capacity and Internal POPs, in contrast with the superb internal/external POPs established by Pipe Networks ! What a waste ! Guess thats their business....

The only reason they can sell for less is because now they have more than 3Tb/s+ of bandwidth at hand to throw ! They are a bunch of CHEAPSCAPES !
djzort
Nov 27, 2010 5:03 PM
@scan06disk youve made my point. TPG are cheaper because of international capacity and vertical integration, not because of telstra separation.

NBN doesnt do anything for international capacity, and it removes the possibility of vertical integrations.

Here is the price formula for NBN connections over time...
$cost = $NBN wholesale + 1c

Jilliards claims it somehow increases competition doesnt seem to factor in that last mile connectivity is only a part of the total cost of broadband. And that with telstra current 'monopoly' of sorts, prices are still dropping through the floor.

TPG are slow, but again, the NBN wont solve that. Nor will FTTH.
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